That sounds incredibly smart because crypto taxes are a huge headache to do yourself and crypto-tax preparers charge $500-$1000/year. Does having the LLC increase your tax complexity? If so, by how much?
> Does having the LLC increase your tax complexity?
Based on the verbiage of your question, I would simply say this isn't something you would try to structure without tax counsel/IRA counsel. Note, what I am referencing is known as a self-directed IRA LLC (sometimes called a special purpose LLC).
If structured properly the IRA LLC should not need to file a federal tax return (it should be a single member LLC, so it is considered a disregarded for tax purposes, with the IRA being the sole member). That said if you dip into a tax free retirement account, you will likely trigger significant taxes, so again this is where the tax counsel/IRA counsel would guide you to avoid those potential liabilities. There are some other potential issues with IRA LLCs concerning disqualified persons and prohibited transactions, to avoid triggering taxes (all pretty simple and navigable once you are informed and aware of the issues)
Based on the verbiage of your question, I would simply say this isn't something you would try to structure without tax counsel/IRA counsel. Note, what I am referencing is known as a self-directed IRA LLC (sometimes called a special purpose LLC).
If structured properly the IRA LLC should not need to file a federal tax return (it should be a single member LLC, so it is considered a disregarded for tax purposes, with the IRA being the sole member). That said if you dip into a tax free retirement account, you will likely trigger significant taxes, so again this is where the tax counsel/IRA counsel would guide you to avoid those potential liabilities. There are some other potential issues with IRA LLCs concerning disqualified persons and prohibited transactions, to avoid triggering taxes (all pretty simple and navigable once you are informed and aware of the issues)